Thursday, 18 July 2024
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Stock Market

Market Outlook: Volatility Ahead with Expiry and Budget Speculations

  • Markets closed with slight gains despite volatility.
  • Sector rotation included banking, sugar, and fertilizer stocks.
  • Upcoming IPOs and futures expiry to influence market dynamics.

The market saw a mix of gains and losses across various indices, with BSESENSEX and NIFTY closing the week in positive territory. Sector rotation was notable, especially in banking, sugar, fertilizer, and railway stocks. The sharp gains in fertilizer stocks raised some concerns due to significant volume changes.

Looking ahead, the market faces potential volatility due to the expiry of June futures and the anticipated budget announcement. Investors are advised to remain cautious, considering the expected lack of significant news flow and ongoing sector rotations. Profit-taking is recommended to mitigate risks during this period.

Navigating Market Volatility: Strategies Amid Expiry and Upcoming Budget

In the primary market, several IPOs received strong investor interest. Le Travenues Technology Limited and Dee Development Engineers Limited saw substantial oversubscription, indicating robust market appetite. Meanwhile, the upcoming IPOs from Allied Blenders and Distillers Limited and Vraj Iron and Steel Limited are expected to draw significant attention, potentially adding to market liquidity.

As the market approaches the expiry of June futures, volatility is expected to increase. The bulls currently hold the upper hand, but the limited time to expiry suggests that the market could see intensified trading activities. Additionally, the upcoming budget announcement in mid-July is anticipated to be a significant market mover, with potential to break the current trading range.

Given these factors, a cautious approach is recommended for investors. The lack of fresh stock ideas and sector rotations suggest that taking some money off the table might be prudent. This strategy would allow investors to capitalize on current gains while waiting for clearer market signals post-budget.

The upcoming week is expected to be volatile due to the expiry of June futures and anticipations around the budget announcement. Investors should remain cautious, take profits where possible, and be prepared for potential market shifts driven by these events.

“Markets are driven by sentiment and news flow, and the upcoming expiry and budget have the potential to influence market direction significantly.”

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